They're finally finding an effective use for solar...

By: hcubed , 12:20 AM GMT on December 23, 2012

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...and Big Oil is paying for it.

Solar and Big Oil Join Forces in Middle East

Posted: December 18, 2012 at 11:46 am

"...Solar technology can use heat from the sun to extract heavy crude from aging fields—and the idea is gaining ground and investment from big oil companies like Shell..."

Last week, Royal Dutch Shell Plc. (RDSA), RockPort Capital and a few others invested a total of $26 million in California-based GlassPoint Solar Inc. The investment will spur the company’s expansion in the Middle East - and it’s all about crude oil extraction."

A quick note here: $26 million is just about the same amount that bankrupt Evergreen Solar ($25 million) got as a loan guarantee.

"...What the energy majors are eyeing in particular is GlassPoint’s Enclosed Trough Concentrating Solar Power (CSP) enhanced oil recovery (EOR) process. In less acronymic terms, it is technology that uses solar to tap into wells that have already been “played out” but in which at least one-third of their potential heavy oil is not recoverable by conventional drilling and pumping means.

Typically, tapping into “played out” wells is done by using natural gas to boil water into pressurized steam to flood the well and make the oil more fluid for pumping..."

So here's something else that oughta make them cheer - no more fracking.

"...And recent studies show that solar EOR may be better than natural gas EOR. Specifically, solar EOR can produce 16% more oil from a played-out well than natural gas processes — and there is no fuel cost. So the process works better and is more economically viable..."

AND it saves the oil companies money, too. What's not to like?

"...GlassPoint, though, is not the pioneer of this technology. ARCO came up with it in the early 1980s, but it wasn’t cost-effective. But since then, BrightSource Energy (BSE) has taken the technology to new heights and taps into aging wells for Chevron (NYSE:CVX) in the Coalinga oil field. BSE has spent $67.3 million on this project, which began in earnest last year.

GlassPoint already has a 300 kilowatt solar EOR project in Kern County, California, and another project close to completion in an oil field south of Oman. It is now seeking to expand to Kuwait and Bahrain where its technology will reduce oil production costs. GlassPoint also notes that this technology will save on gas used in the Middle East to produce oil. That gas can instead be exported.

Along with Shell and RockPort, Nth Power, and Chrysalix Energy Venture Capital also chipped in for the GlassPoint investment.

The lesson in all of this: There is a confluence of interests between the fossil fuel big boys and renewable energy — who are anything but eternal enemies. When you can calculate that renewable energy can improve big oil’s bottom line, that’s when you’re half way to a feasible energy future..."

source was here: Link

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About hcubed

Living in Biloxi MS, have been here since '85 (first Hurricane was Elena).